A Nike flagship store in Shanghai. CHEN YUYU/FOR CHINA DAILY
Shares of Topsports International Holdings fell sharply in Hong Kong trading after Nike Inc moved to cut off the distributor's online sales of Nike products on the Chinese mainland, marking the latest step in the US sportswear giant's efforts to regain control of its digital retail ecosystem.
Topsports shares opened down 23 percent on Wednesday, trading at HK$1.47 ($0.19) and valuing the company at about HK$9.12 billion. The decline followed the company's announcement that Nike had formally notified it that sales of Nike products through Topsports' online platforms on the Chinese mainland would be terminated from Jan 1, 2027.
Nike plans to phase out thousands of online distributors in China as it seeks to address what it views as an increasingly fragmented digital marketplace and revive growth in one of its most important regions.
Beginning next year, the Oregon-based sportswear giant's online presence in China will focus primarily on its own website, official mobile apps and flagship stores operated on major domestic e-commerce and social platforms, including Tmall, JD and Douyin.
